Medical Marijuana Stock Could Reach New Highs on Ballot Approvals

By Avi Salzman

Dude!

Yes, dude?

Voters in Colorado and Washington state approved ballot initiatives legalizing marijuana for recreational use on Tuesday.

Does this mean marijuana is actually legal in those states? That’s not clear just yet. Federal laws trump state laws when the two come into conflict, according to the supremacy clause of the U.S. Constitution. Or as Colorado Governor John Hickenlooper said in a statement to CNN: “don’t break out the Cheetos or goldfish too quickly.”

The Justice Department reiterated that marijuana is a Schedule 1 controlled substance, but it hasn’t given details on what it plans to do: “The Department of Justice is reviewing the ballot initiatives and we have no additional comment at this time.”

Yes, this could even go to the Supreme Court.

Regardless of whether it makes Justice Antonin Scalia giggle uncontrollably, these votes have political power, if not direct legal power. And the medical marijuana industry in particular is jumping all over them.

Medical Marijuana (MJNA), an over the counter stock, with a market cap of about $80 million, trumpeted Colorado’s decision in particular in a press release: “The winning vote in Colorado now positions medical marijuana even more so as a critical issue facing the country. It also encourages additional states pursuing legalization efforts to forge ahead with their propositions.”

MJNA is lighting up today, jumping 21% on volume that’s about four times as high as normal. Yes, it’s up just 3 cents to 14 cents per share. But I think we can all still agree: higher is higher.

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